Car insurance is not a right, but a privilege!

Car insurance is not a right, but a privilege!
a car insurance. This is generally thought lightly. There are many providers. There is always someone cheaper, it always works out. You will be presented with a wonderful premium. You are happy, but the insurer is the one who has the last laugh. Did you think that only kilo bangers in the supermarket are part of a price war? No, wrong. There are also a number of price fighters active under car insurance. Some car insurers try to lure you with a very low premium that you already think. This is not right! Did you also know that it is the same insurers who then, once they have lured you in, increase that apparently low premium by dozens and sometimes even hundreds of percent, as Promovendum recently did by 142%, or that an insurer decides to send bad customers a cancellation letter? Yes they do. So scratch your head when you get the 'kilo banger feeling' when taking out a new car insurance policy. After all, you are looking for security, continuity and expect service.

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"it will always work out" attitude
The motor vehicle liability insurance (car insurance) covers an amount of at least 6,070,000 for damage to persons and an amount of 1,220,000 for damage to property per event. Let's go back to that "it will always work out" mindset. Insurers, especially car insurers, are becoming increasingly strict when accepting new car insurance policies. On average, Australia non-life insurers make a loss of 113% on car insurance. They will do everything they can to get the good customer and reject the bad one. Insurers also do not want a defaulter or a texting motorist as a new customer. When a new policy is applied for, the company automatically starts a system that searches for any registrations. All registrations are administered by Stichting CIS . And do you have a registration with Stichting CIS? Then in 99.99% of the cases you will NOT be accepted by a normal insurance company.

What kind of registrations are those?
1. Default
Oh, that car bill can wait. You will pay that later. , it has been open for some time. Under the WFT (Financial Supervision Act) an insurer must send the customer a number of reminders. The policy conditions also state the consequences of not paying the premium (on time). Initially, your cover may be suspended. Then there is no cover in case of damage. Finally, after those few reminders, the company may cancel your policy for default. This is very easy. Gone…the policy is gone and you have a registration due to non-payment. Apart from that, you now run the risk of a fine from the RDW of 400 for not being insured for your car. Insurers hate default. Defaulters cause a higher claim burden. If any of your insurance policies have ever been canceled due to non-payment, the insurer may refuse applications for new policies. When applying for new insurance, you must state whether you have been canceled by an insurer in the last eight years due to non-payment. Eight years, that's a long time.
2. Claim history
If you have caused a lot of damage, companies simply find it too risky to insure your vehicle. Every insurer can see how many claims you have had. When applying for a new policy, you must also state how many claims there have been in the past five years. Regardless of whether it was your fault or not. There is a setback of 5 claim-free years for each debt claim. You may end up in a minus, a so-called malus registrationin Roy-Data (the system in which no-claims years are recorded). Firstly, we advise you not to cancel your current insurance, because it seems to be cheaper elsewhere. The reason for this is that many insurers do not accept new customers with a malus registration. You don't just have a new policy elsewhere

3. Lied on the acceptance questions
When taking out a policy, a number of final questions will be discussed with you. You must of course answer or complete these questions truthfully. If you conceal something, a claim related to what has been concealed (there must be a causal connection) may be rejected and the company may even decide to cancel a policy. This is because they were previously unaware of the exact risk to be insured. This can also result in a registration with Stichting CIS.

4. Driving disqualification or criminal history
Morality also plays a role in acceptance by an insurer. They often consider someone with a criminal history to be too great or a higher moral hazard. Incidentally, a possible criminal history, which has arisen in the last eight years, is also asked when applying for a policy. A previously received driving disqualification , for example for driving under the influence of alcohol, improper use of social media while driving a vehicle or drugs, also poses too great a risk for an insurer. They do not wish to insure this. The moral hazard is too great.

5. Fraud
You probably know what that means, it's just not allowed. Fraud also leads to a registration with Stichting CIS. As indicated earlier, insurers are becoming increasingly strict in acceptance. But suppose... you are familiar with 1 of the 5 examples above, what now? Are you required to insure your car against Third Party Liability (WA)? Correct. And if you don't do that and the car is in your name, you can get a fine from the RDW of 400. There is then only 1 option, 1 possibility to apply for your insurance. There is only 1 company where your car, contents, building and liability insurance can be requested..
Then drive uninsured
We want to make it clear that small things can have terrible (financial) consequences. That 'it will always work out'-thought does not work well in many of the above examples and we experience that every day. Which in turn results in driving around uninsured (no coverage in the event of damage), insuring the car in someone else's name (fraud and possibly no coverage in the event of damage). Among other things, it is suspected that many taxis drive uninsured or have been applied for in the capacity of 'private' and not with taxi insurance. It is all such a shame and it is perhaps equally important to consider the privilege that regular car insurance entails. Pay on time, put your phone on silent in the car, protect the interests of your car insurer, think about speed and don't do stupid things. Please handle it carefully or else no one will be able to take out car insurance anymore?

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